Home Equity Loans and Lines of Credit

Home equity loans and lines of credit can be a great, inexpensive way to use the equity in your home to borrow for larger purchases. A Home Equity Loan is a great option when you need to make a single, large purchase at a certain price. If you aren’t sure of the final price, or if it is a reoccurring cost, a Home Equity Line of Credit can be perfect- it works similarly to a credit card, meaning you have access to the borrowed sum, but if you pay it down that balance becomes available again. Both options are convenient ways for you to use the equity in your home to save you money!

Home Equity Loan

The equity in your Vermont or New Hampshire home can come in handy when you need to borrow money for home renovations, debt consolidation, or to pay for larger items or experiences such as medical bills, or other hefty expenses. VSECU’s home equity loan is closed-end, with a fixed interest rate for a specified number of years.

FEATURES

FIXED RATES

This is a closed-end loan with a fixed interest rate and term.

LUMP SUM

The borrowed amount is paid to you in one lump sum.

FLEXIBLE TERMS

You select the number of years it will take to repay the loan.

MINIMUM AMOUNT

Minimum loan amount for this product is $5,000.

TAX DEDUCTIBLE

Interest on this loan may be tax deductible.

ONLINE ACCESS

Fill out our free and fast paperless online application with no obligation.

FAIR MARKET

Borrow up to 90% of fair market value, as determined by a professional appraiser.

TAX ASSESSED

Borrow up to 75% of the tax assessed value of your home.

DETERMINING ELIGIBLE AMOUNT TO BORROW

To determine how much you can borrow, you first need to know the total equity in your Vermont or New Hampshire home. The first step is to determine the value of your home. You can use either the professional appraised value of your home or the tax assessed value of your home. The equity in your home is the difference between the value of your home less all other outstanding balances on your existing mortgage. This is the amount that is available to borrow from, up to a certain limit, either 90% or 75% of the amount, depending on which valuation approach you use.

The total maximum amount that can be borrowed is $250,000 when using the appraised value, or when using the tax assessed value and borrowing 50% or less of the value of the home. The total maximum amount that can be borrowed when using the tax assessed value and borrowing up to 75% of the value of the home is $150,000.

APR = Annual Percentage Rate. Rates and APRs listed are “as low as” and may be adjusted based on individual credit standing and term. Payment information does not include amounts for taxes and insurance premiums – if applicable, actual payment obligation will be greater. Estimated monthly payments are based on a $10,000 loan. Calculated payments shown are for estimation purposes only. Actual loan payment amount will be disclosed at loan closing and may differ slightly.

Home Equity Line of Credit

A Home Equity Line of Credit (HELOC) is a form of revolving credit, like a credit card, for which your home serves as collateral. A Home Equity Line of Credit can be used to pay for home improvements, medical bills, a once in a lifetime vacation, major purchases. It can also be established as a safety net or cushion for unexpected future events. This line of credit should not be used for day-to-day expenses.

You’ll be approved for a specific amount of credit that will be available for you to use over a period of time, whenever you need it. You make monthly payments on your outstanding balance, and as you pay down your line of credit, the funds become available again for use.

FEATURES

VARIABLE RATE

This loan is assessed with a variable interest rate that may fluctuate.

FLEXIBLE ACCESS

You can tap into your line of credit whenever you need the money.

FLEXIBLE TERMS

A revolving line of credit will be available to you over a specific period of time.

MINIMUM AMOUNT

The minimum line of credit is $5,000.

TAX DEDUCTIBLE

Interest may be tax deductible. Consult a tax adviser about deductions.

ONLINE ACCESS

Funds available to you through online transfer, by check, or by calling VSECU.

APPRAISAL

Borrow up to 90% of fair market value, as determined by professional appraiser.

TAX ASSESSED

Borrow 50% or less of the tax assessed value to receive the maximum amount.

DETERMINING ELIGIBLE AMOUNT TO BORROW

To determine how much you can borrow, you first need to know the total equity in your Vermont or New Hampshire home. The first step is to determine the value of your home. You can use either the professional appraised value of your home or the tax assessed value of your home. The equity in your home is the difference between the value of your home less all other outstanding balances on your existing mortgage. This is the amount that is available to borrow from, up to a certain limit, either 90% or 75% of the amount, depending on which valuation approach you use.

The total maximum amount that can be borrowed is $250,000 when using the appraised value, or when using the tax assessed value and borrowing 50% or less of the value of the home. The total maximum amount that can be borrowed when using the tax assessed value and borrowing up to 75% of the value of the home is $150,000.

HOME EQUITY LINE OF CREDIT RATES

Type

Rateas low as*

APRas low as*

Repay Period

CLTV

Monthly Adjustable

5.00%

5.00%

15 years with a 15 year draw

Less than or equal to 80%

Monthly Adjustable

6.50%

6.50%

15 years with a 15 year draw

Greater than 80%; up to 90%

APR = Annual Percentage Rate. Rates and APRs are variable, are listed “as low as”, and may be adjusted based on individual credit standing and term. Maximum APR is 18.00%; floor APR is 4.50%. Other charges may be imposed, including: a property appraisal fee of $475; a title update fee of $115 to $400; and a late fee of 5% of the payment (which may be charged for a payment more than 15 days late). VSECU may cover closing costs up to $525. If HELOC is closed within 3 years of consummatin, borrower(s) is/are responsible to refund VSECU the closing costs.

VGreen Home Equity Loans

Enjoy more affordable financing for your clean energy projects. If you need to finance an alternative or renewable energy project, efficiency upgrades, or more general home energy improvements, check out our VGreen home equity loans. Learn more.

You can apply online in our Mortgage Center for your mortgage or mortgage product. In most cases, qualified applicants receive instant pre-approval. In our Mortgage Center you’ll be able to read about our Mortgage Originators, access additional resources and view all our featured rates.

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